Question
Why did India embark on far-reaching economic reforms in 1991?(1 point)
There was a shortage of labor.
There was a shortage of labor.
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
The country faced severe food shortages.
The country faced severe food shortages.
India had recently gained independence.
There was a shortage of labor.
There was a shortage of labor.
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
The country faced severe food shortages.
The country faced severe food shortages.
India had recently gained independence.
Answers
GPT-4o mini
India embarked on far-reaching economic reforms in 1991 primarily because **the country was unable to pay for vital imports**. The economic crisis at that time was characterized by a balance of payments crisis, leading to a depletion of foreign exchange reserves. This situation necessitated significant reforms to liberalize and open up the economy to stimulate growth and stabilize the financial condition.